Financial PlannersNews Financial Planners on Sharemarkets

Have the Sharemarkets Bottomed Out Yet?

At Approved Financial Planners in Perth, we have more than 40 years’ combined experience in the financial industry. We also have the full resources of our parent company, AMP Capital. One of the best resources AMP Capital has made available to us is their Chief Economist and Head of their Investment Strategy Team, Dr Shane Oliver.

Recently, Dr Oliver wrote an article on the AMP Capital company blog called, “Have we reached the bottom?” It is a concise analysis of our current economic situation and contained his projections for the near future. We would like to share some of his ideas with you.*

The Reserve Bank of Australia (RBA) left the interest rate on hold at 2.0% during their first meeting of 2016. Dr Oliver believes their reasoning to be “reasonably solid economic data within Australia” and “global economic turmoil.” He also projects another rate cut of 0.25% to provide more relief for the Australian economy.*

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Financial PlannersNews Market Volatility with Financial Planners Perth

Causes, Opportunities and Outlook for Market Volatility

With years of experience serving the Perth market as financial planners, we have learned to look for the good in any market variation. Recently, four executives from our parent company, AMP Capital, did just that in a discussion of what recent volatility, especially in oil, the banking sector and emerging markets, could mean to investors.*

The participants: Investment Director Jeff Brunton, Head of Global Fixed Income Simon Warner, Head of Credit Research Sonia Baillie and Chief Economist and Head of Investment Strategy Dr Shane Oliver. We would like to present the salient points of their discussion.*

Current Market Volatility Driven by Global Macroeconomic Uncertainty

Uncertainty can affect markets in a negative manner. Global uncertainty has affected the market in three main areas.*

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NewsSuperannuation Fund Understanding Superannuation in Australia

Understanding Superannuation

One of the many financial services we offer at Approved Financial Planners is help with your superannuation fund. Whether you choose self managed superannuation or any of the super funds available to you, we can provide sound financial advice.

How Superannuation Works

Money is placed into your superannuation account, also known as a “super account” or “super,” by you, your employer or both. The money in your super fund is then invested with the intent of it growing in time, even though it will occasionally return a negative result for the year. *

As a super grows, the money that was earned is reinvested and also earns a return; this helps your balance grow even more. On member contributions for which you claimed a tax deduction or on contributions from your employer, your tax is only 15% of any contribution up to $30,000 per year. The $30,000 limit is known as “concessional contributions cap.” *

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Investment PlanningNews Education Plan For Kids With Financial Planners

Planning an Education for Your Children

One of the many services our financial planners provide to our clientele in the Perth area is planning an education for their children. We know that everyone wants to provide for their children and an education is at the top of the list for a lot of parents. According to the Financial Planning Association of Australia (FPA), though, some families may be better off not trying to put the money aside because it could make them become a burden to their children later in life.*

The FPA strongly suggests getting your own finances and lifestyle in order before deciding whether or not to put money away for your children’s education. If you can, though, here are some options suggested by the FPA that can help you save for your children’s education.*

Pay Down Your Mortgage Faster

The FPA suggests that you would be well-served to focus on paying down your mortgage as soon as you possibly can. One strategy includes finding the lowest rates and using a redraw facility to pay for college expenses.*

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Financial PlannersNews Steady Capital or Sustainable Income

Do You Need Steady Capital or Sustainable Income?

As providers of a wide range of financial services in Perth, we have helped a lot of your neighbours achieve their financial goals. However, there is no such thing as a “one size fits all” investment because everyone’s individual situation is different.

One of the basic questions we like to ask our clients is whether they are looking for steady capital or sustainable income. Recently, our parent company, AMP Capital, addressed the effects of the low cash interest rate on cash investments. While a low cash interest rate is good for the economy, it tends to reduce the value of cash investments such as term deposits.*

As you probably know, the cash interest rate is still at a record 2.0%. For comparison, it was at 7.25% in August 2008 and 4.75% in November 2011. *

Cash Investments

Term deposits and other cash investments have traditionally been regarded as “safe” investments because the value of those investments is usually stable. Historically, interest rates have been enough, even when in a “low” cycle, to provide adequate return on investment (ROI). However, interest rates are now at record low levels.*

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Financial PlannersSuperannuation Fund Pitfalls For Setting up an SMSF

Setting up an SMSF? Watch Out for These Pitfalls.

A lot of Australians are opting out of their employer’s superannuation funds and setting up self managed superannuation funds (SMSF’s). At Approved Financial Planners, we have helped numerous people in the Perth area with their SMSF’s.

According to the Financial Planning Association (FPA), though, some costly mistakes are common among those establishing SMSF’s. Here are a few of them.

Letting Your Money Sit

Some Australians who opt for SMSF’s put their money into them but just let it sit as cash. The FPA stresses the importance of those who establish an SMSF having a plan and a strategy for how their funds are going to be invested.*

Inaccurate Assessment of Costs

It can cost a lot of money initially to set up an SMSF. Then there are ongoing costs, such as investment fees, legal advice and ongoing accounting. If there is a corporate trustee, it will cost money to maintain the trustee structure.*

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Financial PlannersNews Financial Planners Help Balance Present and Future Lifestyle

How the Right Financial Planner can Balance Your Present Lifestyle with Your Future

In Perth, financial planners have an important job to do. We have to help you live the kind of lifestyle you want now while helping you plan for your future. Most people want to live well now, but they want to have enough money to live well in the future, too. We understand that and are experts at helping you strike that balance.

We know that everyone has different “drivers” in their lives. Some like to take vacations. Some like to play golf. Some like to fish or boat. Some like knowing that their children’s college education will be taken care of for them. Some place the most importance in the house they live in.

In Perth, it can be quite expensive to do many of these things. That makes it even more beneficial for people to maximise every dollar they earn, both in the present and the future.

How We Help You Meet Your Goals

At Approved Financial Planners, it all starts with your goals. When you talk to one of our financial planners, we can start with your goals. Then, we find out your resources, such as assets and income. We also take your monthly expenses into consideration. Your superannuation fund is also important. Some people decide to use a self managed superannuation fund and make extra contributions through the fund.

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NewsSuperannuation Fund Defined Benefit Super Scheme

Defined Benefit Super Scheme? Why a Super Checkup May Be Beneficial.

Many Government or public sector employees have PSS defined benefit superannuation funds. We would like to explain the difference between an accumulation-style superannuation fund, a defined benefit superannuation fund and a self managed superannuation fund.

When you retire, especially if you plan to stick around the Perth area, you don’t know how much money you will need to live the lifestyle you want. We feel it is helpful for those with defined benefit supers to understand their options.

What is a PSS Defined Benefit Super Fund?

A PSS defined benefit super is so named because the benefits you receive upon retirement will be “defined” or based upon final average salary (FAS), your contribution rate and the amount of time you were a PSS member. The Australian Government and other participating employers offer this kind of super fund.*

Why is it Different

Other super funds are invested for you. You can either gain money or lose money. The amount of money you eventually collect is dependent upon how much money is in your super fund. When you retire, you can collect your super as a monthly payment (retirement income stream), a lump sum or a combination of both.**

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NewsRetirement Planning Factors for Investing in Retirement

Important Factors for Investing in Retirement

Retirement planning can be tricky if you don’t know what you’re doing. Fortunately, we have helped numerous people in the Perth area get started on the path to a prosperous retirement. At Approved Financial Planners, we have a wealth of local experience, combined with the resources of AMP Financial.

While we are not allowed to give any specific advice on this blog due to the disparity in individual financial situations, we would like to provide you with some general information that both we and AMP feel is important when making investment decisions.

Why Retirement Planning is Important

For many in the previous generation, an age pension was enough to provide a comfortable retirement. However, the Australian Government is now encouraging everyone to take control and save for their own retirement.*

As more baby boomers reach retirement age, the number of people drawing pensions will soon be too large for the current workforce to sustainably support them. Consequently, Australians are being encouraged to create their own sources of income to supplement their age pensions and ensure a comfortable lifestyle after retirement.*

Here are some factors to consider when planning your retirement.*

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Financial PlannersInvestment PlanningNews Creating Passive Income Streams

Tips for Creating Passive Income Streams

Investment planning can be confusing and scary. It is one of the services we offer in our Perth office. When investment planning is done right, your money can make money for you. We cannot offer specific information over a blog; you will have to contact our office in Perth for a consult if you would like specific advice. However, we can provide some general tips to get you pointed in the right direction.

Do You Have Goals Yet?

Our parent company, AMP Financial, has a lot of good information on their website, https://www.amp.com.au/. On their page entitled “Understanding Investments,” they recommend that you formulate short term, medium term and long term goals. Short term is defined as in the next six months to two years. Medium term is the next two to five years. Long term is anything further down the road than five years.

Choosing the Correct Investment Vehicle

On AMP’s webpage called “Choosing the right investment option,” they explain how to decide which forms of investments are right for you. The first factor to take into consideration is your risk tolerance. This is determined by combining your attitude towards risk with the amount of time you have to invest.

Generally, the higher the potential return, the higher the risk. However, that isn’t always the case and our financial planners are experts at finding investments that have above-average risk to reward ratios. Here are some risk-reward factors of popular investments.

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